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2018 (10) TMI 900 - AT - Service TaxRefund/rebate of Service Tax paid on export of services - Business Auxiliary Services - service charges in the form of commission by their Parent Company - Export of Service Rule, 2005 - Held that:- The procedure of retaining the service charge/commission amount and only remitting the remaining portion of the proceeds in foreign exchange will have to be necessarily treated as saving of foreign exchange and by implication is akin to receipt of monies in convertible foreign exchange - It is nothing but saving of foreign exchange as the Appellant has retained that portion and not sent the same in foreign exchange to the Parent Company at Singapore along with other said proceeds. Outflow of foreign exchange has been reduced to the extent of commission/service charge retained by the Appellant within India. Such retention has to be necessarily treated as saving of foreign exchange. Appeal allowed - decided in favor of appellant.
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